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India Cements eyes exports

Aug, 20 2012

(India)  --  Chennai-based India Cements is looking at exports to Sri Lanka and South African countries.

“We are looking at exports to countries like Sri Lanka and South Africa. Of course, there are challenges, but exports are feasible now,” said N Srinivasan, vice chairman and managing director.

The company says the quantum of exports would be marginal and would not offset the Indian market slowdown.

“The amount of exports will be marginal. We are not considering it as enough to offset the slowdown in demand in India and the overcapacity of the facilities,” said Srinivasan.

Mr Singh added that price in Sri Lanka is around 850 Sri Lankan rupees per bag, and the price in South Africa is around $110 per tonne. The average selling price of one bag in Chennai is around Rs 340.

Mr Singh said that there are certain entry barriers like meeting the quality and requirement conditions of the target markets.

The company is expected to start exports probably to Sri Lanka first this fiscal. He refused to divulge more details.

The company will also need to address issues like higher cost of logistics and internal transport of consignments from the existing factories to the ports. Further, the company also has to meet the entry barriers in these countries, especially in the African countries, before starting exports.

By: Rashmi Kalia (ARI-C NEWS)

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